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152229v01 <br />SMM:06/07/2010 <br />18 <br />IRREVOCABLE LETTER OF CREDIT <br />No. ___________________ <br />Date: _________________ <br />TO:City of Orono <br />2750 Kelley Parkway <br />Orono, Minnesota 55356 <br />Dear Sir or Madam: <br />We hereby issue, for the account of ___________________________________ and in your favor, our <br />Irrevocable Letter of Credit in the amount of $____________, available to you by your draft drawn on sight on the <br />undersigned bank. <br />The draft must: <br />a) Bear the clause, "Drawn under Letter of Credit No. ________, dated _____________, 2______, of <br />(Name of Bank) "; <br />b) Be accompanied by an affidavit signed by the Mayor or City Administrator of the City of Orono certifying <br />that _________________________________is in default of the Development Contract with the City of Orono and that <br />five (5) business days prior written notice has been given by the City to the Developer with respect to the existence of <br />such default, and such default has not been cured. <br />c) Be presented for payment at (Address of Bank) , on or before 4:00 p.m. on November 30, 2______. <br />This Letter of Credit shall automatically renew for successive one-year terms unless, at least forty-five (45) <br />days prior to the next annual renewal date (which shall be November 30 of each year), the Bank delivers written notice <br />to the Orono City Administrator that it intends to modify the terms of, or cancel, this Letter of Credit. Written notice is <br />effective if sent by certified mail, postage prepaid, and deposited in the U.S. Mail, at least forty-five (45) days prior to <br />the next annual renewal date addressed as follows: Orono City Administrator, Orono City Hall, 2750 Kelley Parkway, <br />Orono, Minnesota 55356, and is actually received by the City Administrator at least thirty (30) days prior to the <br />renewal date. <br />This Letter of Credit sets forth in full our understanding which shall not in any way be modified, amended, <br />amplified, or limited by reference to any document, instrument, or agreement, whether or not referred to herein. This <br />Letter of Credit is not assignable. This is not a Notation Letter of Credit. More than one draw may be made under this <br />Letter of Credit. <br />This Letter of Credit shall be governed by the most recent revision of the Uniform Customs and Practice for <br />Documentary Credits, International Chamber of Commerce Publication No. 500. This agreement shall be construed <br />and interpreted under Minnesota Law. <br />We hereby agree that a draft drawn under and in compliance with this Letter of Credit shall be duly honored <br />upon presentation. <br />BY: ____________________________________ <br />Its ______________________________ <br />229